Change or Die – Microsoft, Google, and Microsoft Partners

July 14, 2008

Last week in Houston, Onsite attended the Microsoft Worldwide Partner Conference.  Some may say the primary theme of the conference was change.  In the face of a competitive threat from Google’s hosted app offering,  Microsoft is replying with huge investments in data centers and a plethora of hosted apps.  Apparently, the traditional software ownership model is changing to a software rental model with the emergence of hosted applications and cloud computing.

This change in the software business model has cannibalization considerations.  Some may contend Microsoft’s software rental model will cannibalize their historical software ownership model.  A significant player in the software ownership model is the Microsoft partner – Microsoft’s de facto sales force.  In response to the threat of lost revenue for partners, Microsoft is offering a commission and renewal program for partners who sell the hosted services.

As one might assume the uncertainty of the new software rental model concerns Microsoft’s partners who are now faced with changing their business models.  For some partners, with investments in application hosting and data centers, the change implies direct competition with Microsoft.  For other partners generating consulting revenue from selling, installing, and administering servers (Exchange, SharePoint), the change implies a reduction in billable hours and lost revenue.

As the esteemed economist Peter Drucker preached, “… we must embrace change or die!”  It will be interesting to see how these changes effect Microsoft’s partners, both from a revenue as well as a mortality perspective.

If you’re searching for New Orleans computer service or repair of your Microsoft based system or network, then call the Microsoft specialists at 504-469-6991. Onsite Computer Services, Inc. in New Orleans

You may also be interested in Onsite Computer’s Blog.

This New Orleans On-Site Computer Service post was provided by Eli Lucas. Eli can be reached at eli@onsitenola.com. Onsite Computer serves the Microsoft computing needs of small businesses throughout the Greater New Orleans area including Uptown, Lakeview, Broadmoor, Mid-City, Metairie, Jefferson, Kenner, Westbank, French Quarter, and the Warehouse District. Please visit our website for New Orleans Computer Service.

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